The Australian dollar inched lower on Wednesday for its third straight day of losses after repeatedly failing to breach a key chart resistance level and on broad greenback strength. The Aussie was down 0.1 percent at $0.7621, drifting away from a three-month peak of $0.7696. It failed at critical resistance of 77 US cents for four sessions in a row, as the US currency getting a lift from rising political uncertainty in Europe amid a slew of elections this year.
The euro fell for a six straight day on the Aussie to be near its lowest since mid-2015. The pound was weaker too, down 0.1 percent. The New Zealand dollar struggled to maintain its 12-week high of $0.7375 hit earlier this week, pulling back to $0.7304.
Investors are keenly awaiting the Reserve Bank of New Zealand's monetary policy statement due Thursday. New Zealand government bonds gained, sending yields 1 basis point lower. Australian government bond futures were unchanged, with the three-year bond contract at 98.050 and the 10-year contract at 97.2750.
The Aussie - seen as a liquid proxy for China plays - was also knocked by data showing China's forex reserves unexpectedly fell below the closely watched $3 trillion level in January, raising concerns about its ability to defend its currency.
European political woes kept the US dollar well supported. France's presidential race sank deeper into the mire of scandal after centrist Emmanuel Macron was forced to deny an extramarital affair and conservative Francois Fillon pressed on with efforts to salvage his reputation. Opinion polls show Macron slightly ahead of Fillon in the first round, but behind far-right National Front leader Marine Le Pen.
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